The economic recovery and tourism reboot is providing attractive opportunities for hotel brands to increase their presence in new destinations.
At a VIR’s talk show two weeks ago on emerging hotspots for eco-luxury and experienced tourism, Wink Hotels CEO Michael Piro shared his ambition to expand to 20 Wink-branded hotels within the next five years in Vietnam. The locations that the brand targets are densely populated tier-2 cities, with vibrant economic activities and convenient for travel and entertainment of tourists.
|New places, new opportunities |
“I want to build a fun, attractive hotel that is suitable for both business and leisure travellers,” Piro said.
Wink Hotels is now becoming a favoured place for young dynamic people to stay. Currently, the brand has one hotel in Ho Chi Minh City and one in Hanoi, but will continue to develop at least one more hotel in each of these cities, two in Danang, and 13 in other localities by 2027.
“We also just broke ground on a Wink Hotel in Haiphong and, in mid-September, the Wink Hotel in Can Tho will also launch,” Piro added. “The next destination is Danang, with the first hotel to be inaugurated in October, while a second hotel will appear there in April next year.”
Wink Hotels is not the only brand to continue aggressive expansion as the tourism industry recovers. Le Thi Thu Nguyet, director of Marketing and Communications at Muong Thanh Hospitality, admits that Muong Thanh has had an extremely fortunate journey over the past two years.
While most hotels had to suspend operations and suffered from zero revenues during the pandemic peak, Muong Thanh welcomed guests for quarantine. It was both a way for the brand to participate in the country’s anti-pandemic fight and to claw back some revenue.
“What makes Muong Thanh feel most proud is that even before the lockdown last year, we managed to launch a hotel complex in Quang Ninh as well as Xuan Thanh golf course with hotel complex in Ha Tinh province,” Nguyet shared. Muong Thanh was the first branded hotel in Vietnam to be founded, managed, and operated by Vietnamese in Dien Bien province in 1992. Celebrating the 30th anniversary this year, it now boasts a system of more than 60 hotels across Vietnam and one in Laos.
The brand has divided hotels into three segments to accommodate each geographical region and customer demand for a variety of services. These are also important criteria for Muong Thanh to decide whether or not to choose a destination for expansion.
“We are almost at the forefront of developing new destinations,” Nguyet said, adding that to support the development of local tourism, Muong Thanh’s goal is to create more job opportunities for local workers and help more people experience the best service at a reasonable cost.
American market research and consulting firm Technavio forecasts that the Vietnamese hotel market will grow by $2.12 billion in the 2021-2026 period, achieving a compound annual growth rate of 14.43 per cent. In 2022, the group predicts that the domestic hotel market will grow by 13.4 per cent.
Savills Hotels director Mauro Gasparotti has had the opportunity to witness the changes in the tourism industry.
“From the early stages of Vietnam’s development, I have seen many great projects up and down the land that create a lot of jobs for local people,” Gasparotti shared.
Even while the tourism industry was heavily affected by the pandemic, Gasparotti noted that the market did not halt completely, with developers and investors still trying to pinpoint the upcoming needs of visitors and giving priority to green tourism products and a more eco-friendly experience.
“I think this is an opportunity for us to restore and rebuild the image of Vietnam’s tourism industry,” Gasparotti added. “The recent restrictions make guests want to experience new destinations more, and also away from crowded places. We are on the right track to tapping into those potentials.”
| ||Talk show presents Vietnam's emerging tourism hotspots |
What new destinations, products, and services does Vietnam's tourism offer? The talk show Emerging Hotspots for Eco-luxury & Experienced Tourism taking place on the afternoon of August 25 will discuss these points in-depth and offer insights into the reviving sector.